Access in-depth special reports dedicated to key trends and developments affecting Retail Banking globally. All reports are editorially independent and designed to provide unique insight.

Company & Market profiles, Exclusive interviews, Opinion pieces and Social Media rankings can be found exclusively for Subscribers

View Special Reports

Data

Exclusive data compiled by our expert analysts on major trends in the sector.

View Data

Subscriber Editions

Read the latest subscriber edition, as well as our archives, including features, comment, research and guest articles.

View Subscriber Editions

Fintrack Editions

Every month, FinTrack will showcase the latest innovations from financial providers around the world. Each innovation is assessed and rated on key criteria, to assist with identifying, tracking & understanding key innovation globally.

India’s RBI penalises Axis Bank and Indian Overseas Bank

By Verdict Staff March 6, 2018

The Reserve Bank of India (RBI) has penalised Axis Bank and Indian Overseas Bank for non-compliance with its directives.

Axis Bank was fined INR30m ($461,100) for non-compliance with the directions issued on Income Recognition and Asset Classification (IRAC) norms, while Indian Overseas Bank was penalised INR20m ($307,400) for not complying with the Know Your Customer (KYC) norms.

In 2016, during statutory inspection of the Axis Bank, violations of various regulations were detected in the assessment of Non-Performing Assets (NPAs).

RBI issued a show cause notice to the bank based on the inspection report and other relevant documents in November last year.

The central bank of the country determined the penalty amount after considering the Axis Bank’s reply and oral submissions made during in the personal hearing.

Indian Overseas Bank was penalised after detecting fraud in one of its branches.

The examination of the documents as well as the internal inspection report revealed non-compliance with the directives issued by RBI on Know Your Customer (KYC) norms.

Following the bank’s reply made after show cause notice as well as oral and written submissions made in the personal hearing, RBI concluded that the charges of non-compliance were substantiated and awarded the monetary penalty to the bank.

Axis bank was penalised under provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, while Indian Overseas Bank was fined based on the Section 47A(1)(c) read with Section 46(4)(i).